Executive Summary

Key Market Movements (Aug 14-28, 2025):

ICVCM delivered landmark approvals: First-ever [biochar and enhanced IFM methodologies earned CCP labels], with [Isometric issuing the world's first CCP-labeled industrial biochar credits]
SBTi strengthened corporate frameworks: [New mandatory five-year review guidance took effect], with [227% surge in companies setting comprehensive climate targets]
VCMI updated Claims Code: [Version 3.1 published August 14], refining corporate claim language for EU compliance
Verra advanced CORSIA pathway: [Howden appointed to assess insurance products] for aviation-eligible credits, operationalizing the 2021+ vintage pathway
Record retirement momentum: [First-half 2025 saw historic 95 million credit retirements], with [57% holding BB+ ratings] - signaling quality-focused demand

Key Developments (Integrity & Standards)

ICVCM CCP Approvals (Aug 13): [Approved three biochar methodologies] (Verra VM0044 v1.2, CAR U.S./Canada Biochar v1.0, Isometric v1.0) and [two IFM methodologies] (Verra VM0045 v1.2, plus one conditional approval). [First industrial biochar CCP credits issued by Isometric to Charm Industrial]

Why it matters: Addresses quality sorting pain point by providing buyers clear CCP-labeled supply in high-demand biochar segment

VCMI Claims Code v3.1 (Aug 14): [Updated claims guidance] with enhanced clarity on foundational criteria and organizational boundaries, aligning with SBTi requirements

Why it matters: Direct solution for EU/SBTi compliant claims wording pain point, providing safe language framework

SBTi Guidance Overhaul (Aug 17): [New mandatory five-year review guidance] and [expanded status categories] (active, expired, archived) taking effect Dec 18, 2025

Why it matters: Reduces due-diligence burden by providing clear transparency on target status and review requirements

Verra-Howden CORSIA Partnership (Aug 7): [Global insurance intermediary Howden engaged] to assess insurance products against [Verra's CORSIA criteria] for 2021+ vintage credits

Why it matters: Unlocks aviation compliance liquidity by operationalizing insurance pathway for CORSIA eligibility without corresponding adjustments

Prices & Liquidity

| Segment | Latest Quote/Range | Direction | Liquidity Driver | | --- | --- | --- | --- | | :-- | :-- | :-- | :-- | | Biochar CCP | $25-42 ([AFOLU Nov data]) | Likely ↑ | New CCP approvals, constrained supply | | IFM CCP | Premium expected | ↑ | Fresh CCP methodology approvals | | N-GEO (Xpansiv) | [$0.77 VWAP (Nov data)] | Mixed | Block trading activity | | CORSIA-eligible GEO | [Up to $1.35 (May data)] | ↑ | Phase 1 compliance demand |

Key Price Signals:

Premium for CCP-labeled credits: [~$27 spread for BBB+ rated projects] over unrated
CORSIA Phase 1 demand: [37% of Q2 2025 issuances potentially eligible], up from 28% prior year
Nature-based ARR averaging [$24 per credit], reflecting implementation costs and removal premium

Policy & Claims Watch

EU CBAM Refinements: [Commission continuing scope extension consultation] through Aug 26, with [50-tonne threshold exemptions and anti-circumvention measures] under political agreement

Corporate impact: EU importers of carbon-intensive goods face simplified but expanding compliance requirements from 2026

Green Claims Directive Stalled: [EU process paused in June 2025] due to EPP resistance over micro-enterprise burden, status unclear

Claims guidance: Companies should continue preparing for eventual ex-ante verification requirements despite delay

Corporate Demand Signals

SBTi Surge: [11,000+ companies with validated targets] (up 227% in 18 months), representing 41% of global market cap
Industrial manufacturer dominance: [One-third of SBTi commitments], over half validated in recent 18-month period
Chinese acceleration: [450 companies with SBTi targets] (tripled in 18 months), signaling major market expansion

Procurement takeaway: Buyers should expect increased competition for high-integrity credits as corporate adoption accelerates

Controversies & Risk Flags

Developer complaints procedure: [60+ carbon project developers calling for overhaul] of registry grievance processes, citing unfair suspension risks and insufficient anonymity protection

Due diligence impact: Heightened scrutiny of project suspension records and complaint histories in vendor assessment

Forward-Looking Signals (Next 4-8 weeks)

ART TREES 3.0: [Public comment period closes Sept 22], final publication expected late 2025
Gold Standard consultations: [Baseline determination] (closes Aug 6) and [suppressed demand accounting] (closes Aug 22)
EU CRCF methodologies: [DACCS/BECCS/biochar draft] open for feedback until Sept 22, Q4 2025 adoption planned
CBAM scope expansion: [Commission consultation closes Aug 26], legislative proposal expected end-2025

This newsletter synthesizes the week's most critical developments for carbon project developers.

ICVCM Approves Biochar & IFM Methodologies, SBTi Updates Net-Zero Criteria & Record Retirements